Baby steps

Fake Nobelist Paul Krugman writes:

My guess is that the myth of the rational market — a myth that is beautiful, comforting and, above all, lucrative — isn’t going away anytime soon.

An explicit admission that yes, one of the core concepts in contemporary economics was propounded and held to be true because it was valuable that people believe it to be true.

Krugman is already further along the path than most, but it's nice to see the pages of the NYT allow a glimpse at how economics is actually practiced.

In other Krugman-blogging, check out his conversation with Charles Stross. Fun.